Item 4D Memo-Manning Concrete RMC CITY OF Item 4D
SOUTHLAKE
MEMORANDUM
(October 18, 2016)
To: Ben Thatcher, Assistant City Manager
From: Rob Cohen, Director of Public Works
Subject: Approve annual purchasing agreement with Manning Concrete
Sawing through an Inter-local Agreement (ILA) with the City of
Grapevine in an amount not to exceed $975,000
Action
Requested: Approve annual purchasing agreement with Manning Concrete
Sawing (Manning) through an Inter-local Agreement (ILA) with the
City of Grapevine in an amount not to exceed $975,000.
Background
Information: The City's Public Works Department requires the services of a
concrete contractor for the repair of, and the placement of, new
concrete pavement, curb and gutter, sidewalk, and other concrete
structures throughout the year in order to arrest and retard the
deterioration of the City's street and drainage infrastructure.
Financial
Considerations: The chart below is a graphical representation of the City's historical
expenditures for this endeavor.
Annual Expenditures on Concrete Services FY 2014- FY 2016
1.2
0.981
1
0.804
0.8
0 0.586
0.6
0.4
0.2 —
0 di
2014 2015 2016
Over the past 3 Fiscal Years, the City has spent an average of
$892K for the installation of new or the repair and replacement of
deteriorated concrete infrastructure. Although the numbers of
City of Southlake Values:
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Item 4D
projects have remained the same over the past 3 years, the
magnitude of the projects has decreased. This trend is expected to
continue in FY 2017.
In preparation for FY17 execution, Southlake partnered with the City
of Grapevine to award an additional year to Manning's base
contract. Grapevine determined that Manning was the best value for
this service since Manning has provided exceptional service to both
Cities and has not asked for a contract price increase since 2014.
Manning has held the unit price of concrete constant despite the
continual increase in cost of ready mix concrete the past several
years. The Bureau of Labor and Statistics published Producer price
indexes for the net output of selected industries and their products.
Ready mix concrete had a 3.8% price increase from Aug 2014 —
Aug 2015 and a 3.5% price increase from Aug 2015 —Aug 2016. If
historical trends continue, we can expect ready mix concrete unit
prices to continue to rise. Southlake will be insulated from this
increase for the next year by continuing to receive personal services
from Manning.
Strategic Link: The approval of the agreement links to the City's strategy map
relative to focus areas of Infrastructure and Partnerships &
Volunteerism. The specific corporate objectives that are met by
these services are to collaborate with select partners to implement
service solutions, and to provide and maintain high quality public
assets.
Citizen Input/
Board Review: N/A
Legal Review: This agreement conforms to the previous ILAs that have been
reviewed by the City attorney.
Alternatives: The City Council may approve or deny this annual purchase
agreement.
Supporting
Documents: N/A
Staff
Recommendation: Approve annual purchasing agreement with Manning Concrete
Sawing through an Inter-local Agreement (ILA) with the City of
Grapevine in an amount not to exceed $975,000.
Staff Contact: Rob Cohen, Director of Public Works
Cristina McMurray, M.P.A, C.P.M, Deputy Director/Operations